The European Commission yesterday adopted a new digital finance package, made up of a digital finance strategy, a retail payments strategy, legislative proposals for an EU regulatory framework on crypto-assets, and proposals for an EU regulatory framework on digital operational resilience.
After a run of high-value deals at the start of the year, fintech M&A has dramatically slowed. What will dealmaking look like in the future? For investors in the fintech market, the contrast could not have been more stark. In the first quarter of 2020, financial institutions, financial sponsors and mature fintech companies generated a series of increasingly high-value deals.
Allen & Overy’s Fintech group returns as contributing editor to the second edition of Global Legal Insights Guide to: Fintech 2020
For the second consecutive year, Allen & Overy is featured as Contributing Editor of the second edition of Global Legal Insights GLI Guide to: Fintech 2020. As part of our role as Contributing Editor, members of A&O’s Fintech group in the U.S. authored the preface of the publication, as well as one general chapter. Our colleagues in the U.S., Germany, Indonesia and the Czech Republic contributed four country chapters.
With the Covid-19 coronavirus pandemic causing some nations to undergo lockdowns and the widespread implementation of social distancing rules restricting physical contact, financial institutions are now being forced to review their operational channels and prioritise the development of digital channels and platforms. We provide below a brief overview of some of the ways in which we expect Covid-19 will accelerate the shift to digital.
Here are some highlights from a seminar which looked at trends in law and regulation concerning cryptoassets, cryptocurrency and blockchain. If you have registered you can see the full recording here.
Over the last few years, digital assets did not appear to fall within scope of French law or regulation as they could not be characterised as e.g. currency, electronic money, financial instruments.
The French Government has taken the initiative to create a cutting-edge legal framework in order to regulate the provision of digital assets services in France.
A&O co-authors the second edition of the FINTECH Bridge Journal with the Fintech Circle - October 2019
A Fintech Bridge represents a bespoke agreement outlining collaboration between two governments, cooperation between regulatory bodies and connectivity between two markets and ecosystems.
This encourages the sharing of information, including emerging trends and regulatory issues, with counterparts and discussions around areas of best practice.
Allen & Overy is advising on the development of the pioneering blockchain-based, multi-jurisdictional commodity trade and finance platform known as Forcefield, which is being launched by a consortium comprised of Accenture, ABN Amro, Anglo American, CMST International, Hartree Partners, ING Bank, Mercuria and OCBC Bank amongst others.
On 20 May 2019, the German Federal Ministry of Finance published a draft bill (Referentenentwurf – “Draft Bill”) for the implementation of the Fifth Money Laundering Directive (“AMD 5”). While most of the Draft Bill is dedicated to amending the German Money Laundering Act (Geldwäschegesetz – “GWG”), it also broadens the scope of the licensing requirement under the German Banking Act (Kreditwesengesetz – “KWG”) for certain services related to crypto values, thus “gold-plating” AMD 5 which does not contain a licensing requirement: The Draft Bill introduces a new licensable activity, the custody of crypto values (Kryptowerte). Also, by introducing a broad definition of crypto values and qualifying these as “financial instruments” within the meaning of the KWG, arranging and trading activities in cryptoassets will also be subject to licensing requirements if provided in Germany. While such broad definition of financial instruments partly confirms the current view of the regulator, it partly also goes beyond that, in particular as it covers security tokens and investment tokens regardless of whether or not further requirements are met. As a consequence, some firms might have to apply for a licence to the German regulator BaFin by end of 2019.
Allen & Overy advises Network International on its GBP2.2 billion initial public offering on the London Stock Exchange - April 2019
Allen & Overy is advising Network International Holdings plc (Network International), the leading enabler of digital commerce across the Middle East and North Africa region, on its GBP2.2 billion initial public offering (IPO) and listing on the Premium Segment of the London Stock Exchange (LSE).
Nivaura, one of the original members of Allen & Overy’s Fuse cohort, has closed a strategic seed funding round, raising $20m from a number of prominent partners.